Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Are Alt Mutual Funds As Risky As FINRA Says? Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, June 18, 2013

Are Alt Mutual Funds As Risky As FINRA Says?

News summary by MFWire's editors

After FINRA recently warned investors about the riskiness of alternative mutual funds, U.S. News and World Report asks, do the benefits outweigh the risks?

Silverblatt notes that alternative mutual funds employ a wide range of strategies and they also have a host of different objectives, which makes it difficult to answer that question broadly. 

Absolute return funds try to get a positive fund each year, regardless of how the stock market is performing. The main risk though is that they can lag behind other funds because of said hedging.

Funds that try to beat the market, of course, will have the riskier and more complex strategies.

Todd Rosenbluth, the director of mutual fund and ETF research at S&P Capital IQ suggests alternative funds pass three tests, size, fees and track record:

He recommends FPA New Income for an absolute return fund:

"FPA New Income is an absolute return fund. However, unlike many of its brethren, it invests in fixed-income securities rather than taking long and short positions in stocks. The fund has a lengthy track record – it has been around since 1969 – and it has proven quite good at obtaining its objective of avoiding negative returns. Notably, since 1984, the fund has earned a positive return each year," he said. 

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use